Abstract: The reform of the Common Agricultural Policy it started in 2015 with several innovative aspects. Regarding the first pillar, such aspects are especially the convergence of the basic payments, the green payments and the coupled payments. In this regard seems interesting carry out analysis about to evaluate the policy impact considering the risks and opportunities due to climate change.In this study the impact of the convergence of basic payments, the introduction of the green payments and the coupled payments has been evaluated on dairy cattle farms in the Grana Padano area. The impact has been evaluated in different climate scenarios by economic, social and environmental indicators. The methodology used is the mathematical programming and especially a model of Discrete Stochastic Programming has been used to represents farms of the FADN database.The main results show that a significant part of the farms is affected by the diversification constraint that reduces the land devoted to corn silage. Farmers could cultivate corn silage after a principal crop (e.g. ryegrass) in order to avoid the diversification constraint, however, determining a negative impact on the use of environmental resources. To consider also that in the future there is an increase of corn silage yields with long cycle.Another result to underline is that which concerns the possibility of soybean cultivation in the ecological focus areas. In fact, considering the coupled payment provided for this crop, the ecological focus areas seem to be an important source of income for the farms.Finally, the analysis shows that the convergence of the basic payment will result in a reallocation of direct payments between farms with a significant impact on farm incomes. No Label

Abstract: The Mediterranean region has always shown a marked inter-annual variability in seasonal weather, creating uncertainty in decisional processes of cultivation and livestock breeding that should not be neglected when modeling farmers’ adaptive responses. This is especially relevant when assessing the impact of climate change (CC), which modifies the atmospheric variability and generates new uncertainty conditions, and the possibility of adaptation of agriculture. Our analysis examines this aspect reconstructing the effects of inter-annual climate variability in a diversified farming district that well represents a wide range of rainfed and irrigated agricultural systems in the Mediterranean area. We used a Regional Atmospheric Modelling System and a weather generator to generate 150 stochastic years of the present and near future climate. Then, we implemented calibrated crop and livestock models to estimate the corresponding productive responses in the form of probability distribution functions (PDFs) under the two climatic conditions. We assumed these PDFs able to represent the expectations of farmers in a discrete stochastic programming (DSP) model that reproduced their economic behaviour under uncertainty conditions. The comparison of the results in the two scenarios provided an assessment of the impact of CC, also taking into account the possibility of adjustment allowed by present technologies and price regimes. The DSP model is built in blocks that represent the farm typologies operating in the study area, each one with its own resource endowment, decisional constraints and economic response. Under this latter aspect, major differences emerged among farm typologies and sub-zones of the study area. A crucial element of differentiation was water availability, since only irrigated C3 crops took full advantage from the fertilization effect of increasing atmospheric CO2 concentration. Rainfed crop production was depressed by the expected reduction of spring rainfall associated to the higher temperatures. So, a dualism emerges between the smaller impact on crop production in the irrigated plain sub-zone, equipped with collective water networks and abundant irrigation resources, and the major negative impact in the hilly area, where these facilities and resources are absent. However intensive dairy farming was also negatively affected in terms of milk production and quality, and cattle mortality because of the increasing summer temperatures. This provides explicit guidance for addressing strategic adaptation policies and for framing farmers’ perception of CC, in order to help them to develop an awareness of the phenomena that are already in progress, which is a prerequisite for effective adaptation responses.